If a person pays for an auto insurance policy upfront, they may be eligible for a refund for the coverage they won’t be using.

5 Things That Drive Up Auto Insurance Rates

Most people know how important it is to shop around for the best possible deal on auto insurance okc, but few realize that some factors may cause premiums to rise. When any of these factors exist, they indicate a likelihood that a policyholder may make a claim. Below are several things that increase auto insurance rates.

Purchasing or Leasing a New Vehicle

Because new cars are worth more than older models, replacement costs are higher. Furthermore, if the vehicle is leased or financed, the lender will likely require full coverage at a minimum level. The cheapest new vehicles to insure include trucks, SUVs, and minivans, while others, such as sports cars, cost more to cover.

A Longer Commute

A long drive to work doesn’t just cost fuel and time; it increases insurance rates as well. Accident risks increase during rush hour, and those who drive for a living will pay for their increased risk because they’re on the road more often.

Relocation

Though the risk is determined largely by ZIP code, city dwellers are statistically more likely to be in an accident, which means higher premiums. Population density and claims history are closely related, and a person moving to a crowded state such as Oklahoma will pay more for coverage. According to industry sources, the state has a high number of uninsured motorists, who drive costs up for everyone else.

Age and Marital Status

When a person is single with no children, they’re considered riskier than a married person with kids. In most cases, if a person is male and under the age of 26, he’ll pay more.

Dropping Coverage

Ditching auto insurance coverage to save money simply isn’t a good idea. Lacking insurance, even for a month, may cause a steep increase in premiums. Rather than dropping coverage, ask about available discounts and other cost-cutting measures.

The Final Word

Auto insurance costs are typically based on factors both controllable and uncontrollable. Understanding what affects insurance rates can help drivers find a competitive provider or rethink their driving habits. To learn more about auto or mobile home insurance oklahoma, visit the company’s website or call today.